Sectoral Caps Basics

The radical changes in the FDI policy have been brought in by the GoI to attract inflow of Foreign Exchange in the Indian market and for creation of employment and job opportunities in India. The Sectoral Cap is elucidated below:-

Sl. No.

Sector

FDI Limits

1.

Defence Sector

Upto 49% – Automatic Route

Beyond 49% till 100% – Government Approval on case to case basis.

* Condition of access to ‘state of art’ technology has been done away with.

** FDI for defence has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act, 1959.